RLI Corp. (RLI) Reports Q3 Earnings: What Key Metrics Have to Say
For the quarter ended September 2023, RLI Corp. (RLI) reported revenue of $350.37 million, up 12% over the same period last year. EPS came in at $0.61, compared to $0.50 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $377.71 million, representing a surprise of -7.24%. The company delivered an EPS surprise of +510.00%, with the consensus EPS estimate being $0.10.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how RLI Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Combined Ratio (Underwriting income ratio) - Total: 98.7% compared to the 99.2% average estimate based on four analysts.
Expense Ratio- Total: 39.2% compared to the 39.2% average estimate based on four analysts.
Loss Ratio- Total: 59.5% compared to the 57.3% average estimate based on three analysts.
Combined Ratio - Property: 121.8% compared to the 121.6% average estimate based on two analysts.
Combined Ratio - Casualty: 90.1% versus 89.4% estimated by two analysts on average.
Combined Ratio - Surety: 81.7% compared to the 79.8% average estimate based on two analysts.
Net premiums earned: $318.41 million versus $346.28 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9.2% change.
Net investment income: $31.96 million versus $30.50 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +50.3% change.
Net premiums earned- Property segment: $94.99 million compared to the $113.93 million average estimate based on two analysts. The reported number represents a change of +17.5% year over year.
Net premiums earned- Casualty segment: $189.31 million versus the two-analyst average estimate of $190.87 million. The reported number represents a year-over-year change of +5.4%.
Net premiums earned- Surety segment: $34.12 million versus $34.99 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +10% change.
Net unrealized losses on equity securities: -$25.24 million compared to the -$116.43 million average estimate based on two analysts. The reported number represents a change of -4.5% year over year.
View all Key Company Metrics for RLI Corp. here>>>
Shares of RLI Corp. have returned -5.3% over the past month versus the Zacks S&P 500 composite's -4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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RLI Corp. (RLI) : Free Stock Analysis Report
